Heat Pumps vs Traditional Hot Water: Which is Better?

A heat pump hot water system works like a reverse refrigerator: it extracts heat from the air and uses it to heat water in a tank. It uses around one-third of the electricity of a standard electric hot water system, and it is much more efficient than a gas storage unit.

Running cost comparison

For a typical household, an electric hot water system can be the largest single user of electricity. A heat pump can cut that usage by 60% to 75%. Over a year, that often translates to hundreds of dollars in savings.

Upfront cost and rebates

Heat pumps typically cost more upfront than basic electric tanks, but the VEU rebate can close much of that gap. Greener Upgrade is a VEU Accredited Provider (A003285), so we apply the rebate directly to your installed price.

Are heat pumps reliable in winter?

Yes. Modern heat pumps are designed to work in temperatures below freezing and are well suited to Victorian winters. They are also quieter than older models and can be installed outside, in a garage or in a utility area.

Which homes benefit most?

Heat pumps suit most households, especially those replacing an old electric or gas storage system. They are also ideal for homes with solar panels, because they can run during the day using your own solar power. See our heat pump range.